Tiny House insurance is currently a really challenging space.

Where previously players like CIL and Benjamin & Benjamin led the way by offering dedicated Tiny House insurance policies, both have confirmed their underwriters no longer offer coverage.

With the discontinuation of these policies, current insurance options are extremely limited.

Presently our information is that only the motoring bodies (RACV/RACQ/NRMA) and Youi offer a dedicated Tiny House on Wheels policy. There are a variety of eligibility criteria for acceptance, which may be limited based on the value of the home, meeting road legal width, and more importantly the location. Bushfire and flooding overlays, along with previous insurance claims at the same property are common reasons for underwriters to decline insurance.

Limited options have resulted in increased premiums, with many people reporting premiums exceeding $2,500 per year. 

While there's an understandable temptation to look for cheaper options, we see a trend where Tiny House buyers purchase "on-site caravan" insurance and hope for the best. We would be extremely hesitant to recommend using a caravan policy, as we are aware of multiple instances where insurers have declined claims on the basis that Tiny Houses are in fact not caravans, for insurance purposes specifically.

We are aware of a number of individuals and organisations pushing hard behind the scenes to convince underwriters that Tiny Houses present a low risk, and we are optimistic about seeing broader insurance options in the not too distant future.

In the meantime, if insuring your new Tiny House is important to you, we recommend the following:

• Calling insurers and receiving a quote prior to committing to purchasing the Tiny Home.
• Ensuring your Tiny Home is built to a maximum width of 2.5m, and is on a registrable trailer with a compliance plate and VIN.
• purchasing a home through a registered, licensed builder

Like much of our growing industry, insurance options are quite fluid, so please monitor our website and social media for updates.

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